Search found 7664 matches

by FiveK
Sun Nov 17, 2019 9:00 pm
Forum: Personal Investments
Topic: need help, a few questions about Trad/Roth IRA and 401k
Replies: 11
Views: 516

Re: need help, a few questions about Trad/Roth IRA and 401k

currently my traditional IRA Is at about 10,500. I opened it in dec 2015, and I had just set it to auto-deposit about 100/month about 2200$ of that was contributed when I was a training medical resident (dec 2015 - dec 2017, missing 2 months), it was tax-deductible contribution, I did not have a 40...
by FiveK
Sun Nov 17, 2019 4:36 pm
Forum: Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 34
Views: 5526

Re: Traditional 401K vs Roth 401K

I’m 38, income of $143,000-$150,000/year depending on how much OT I work. Married filing jointly with 4 children. Max out traditional 401k, Roth IRA and wife’s Traditional IRA yearly. $400k in traditional 401k. Should I be placing money in Roth 401k instead to avoid paying taxes on 401k withdrawals...
by FiveK
Sun Nov 17, 2019 1:58 pm
Forum: Personal Investments
Topic: need help, a few questions about Trad/Roth IRA and 401k
Replies: 11
Views: 516

Re: need help, a few questions about Trad/Roth IRA and 401k

I will definitely check out those forms. I think I get what you're saying. since I've already made my maximum contribution of 6000$ to a traditional IRA for 2019, I should do the Roth conversion before this year ends, correct ? What will your traditional IRA balance (i.e., the thing that goes on li...
by FiveK
Sun Nov 17, 2019 2:40 am
Forum: Personal Investments
Topic: Tax Optimization
Replies: 12
Views: 1315

Re: Tax Optimization

Essentially, I am looking for a way to calculate the lowest amount of taxes with the largest increase in cash (without regard to what I would do with that cash, ie. hold/invest/put in a Roth, etc.). The answer will likely be "as much capital gain as possible" because there will be no tax on the bas...
by FiveK
Sun Nov 17, 2019 2:14 am
Forum: Personal Investments
Topic: Roth conversions, taxes, SORR
Replies: 8
Views: 715

Re: Roth conversions, taxes, SORR

corn18 wrote:
Sat Nov 16, 2019 10:33 am
I just had a look. Seems to be a wash. Pension and SS go down quite a bit. That offsets the lower std deduction and keeps her in the same tax brackets for the most part.
Sorry to mention this - but what if she isn't the surviving spouse?
by FiveK
Sun Nov 17, 2019 2:00 am
Forum: Investing - Theory, News & General
Topic: Withdrawing from deferred income plan
Replies: 7
Views: 528

Re: Withdrawing from deferred income plan

The bad: I have a few low (even 0) % years, requiring me to cover the gap from my taxable accounts (plenty available). That's not necessarily bad, if you can do tax gain harvesting and/or traditional to Roth conversions at unusually low tax rates. We're not quite halfway through withdrawals from ou...
by FiveK
Sun Nov 17, 2019 1:48 am
Forum: Personal Investments
Topic: need help, a few questions about Trad/Roth IRA and 401k
Replies: 11
Views: 516

Re: need help, a few questions about Trad/Roth IRA and 401k

can I still backdoor Roth in 2020 for the year 2019 before I file my taxes ? Yes and no, if I've deciphered your intent correctly. ;) A conversion is always subject to tax in the same tax year as the calendar year in which you do it, so that may be the "no" part. You may, however, make an IRA contr...
by FiveK
Sun Nov 17, 2019 1:34 am
Forum: Personal Finance (Not Investing)
Topic: Taxation of Roth 403b/457b question
Replies: 1
Views: 193

Re: Taxation of Roth 403b/457b question

I am looking for clarification on exactly how taxes apply to Roth variants of investment vehicles. Is this information below correct? Roth IRA Contributions are after-tax. This includes Income(Fed), State, and FICA. Distributions are 100% free in all states. No Income, State, or FICA. Roth 403b/457...
by FiveK
Sat Nov 16, 2019 3:54 pm
Forum: Investing - Theory, News & General
Topic: Tax Deferred : Taxable : Tax Free
Replies: 78
Views: 3861

Re: Tax Deferred : Taxable : Tax Free

I'm still struggling with whether or not Roth conversions make sense now that I'm retired. Roth conversions definitely make sense if the marginal rate you'll pay now is less than the marginal rate you (or your heirs) will pay later (e.g., due to RMDs). They may make sense if the marginal rate you'l...
by FiveK
Sat Nov 16, 2019 2:34 am
Forum: Personal Investments
Topic: New to investing, starting a roth ira at 46
Replies: 26
Views: 1914

Re: New to investing, starting a roth ira at 46

1. Say I have a mutual fund and had put $10k in it 5 years ago and now it has gone up to $16k without me putting anything else into it ( not that I would do that of course). Does that mean I NOW have $16k? Yes - before tax. 2. Theoretically, how would I get my $16k if I wanted to "cash it out"? Aga...
by FiveK
Fri Nov 15, 2019 2:56 pm
Forum: Personal Investments
Topic: New to investing, starting a roth ira at 46
Replies: 26
Views: 1914

Re: New to investing, starting a roth ira at 46

So should I have.... Might be time well spent for you to look through Getting started - Bogleheads Prioritizing investments Investment Order and at least some of the links within those. Doing that could help you understand more of the "why" behind specific advice you will get in this thread.
by FiveK
Fri Nov 15, 2019 2:45 pm
Forum: Personal Investments
Topic: Tax Gain Harvest, Roth Conversion or do nothing?
Replies: 3
Views: 263

Re: Tax Gain Harvest, Roth Conversion or do nothing?

Assuming your tax analysis is correct I would take 0% tax on the capital gain over 12% tax on a Roth Conversion in this scenario. +1 The Roth conversion can be advantageous when one expects a higher marginal rate (e.g., due to RMDs) later. But if the expectation is for lower marginal rates later, t...
by FiveK
Thu Nov 14, 2019 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Health Plan+HSA+403b Optimization - Help Review Spreadsheet
Replies: 6
Views: 371

Re: Health Plan+HSA+403b Optimization - Help Review Spreadsheet

Perhaps part of the difference is that I am using "my" spreadsheet with the expectation that enough $$$ is being tax-deferred to force the medical bills to be payed with money taxed at a 12% Fed rate whereas "the original" spreadsheet applies all taxation at the same 22% Fed rate. Appears you have ...
by FiveK
Thu Nov 14, 2019 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Health Plan+HSA+403b Optimization - Help Review Spreadsheet
Replies: 6
Views: 371

Re: Health Plan+HSA+403b Optimization - Help Review Spreadsheet

I believe the first spreadsheet is consistent with the 'HDHP Analysis' tab in the personal finance toolbox spreadsheet. Unless one person started with the other's, or independently made the same mistake, having two different tools that give the same result suggests (but doesn't prove) that each is c...
by FiveK
Thu Nov 14, 2019 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Catch up HSA
Replies: 2
Views: 341

Re: Catch up HSA

SlowMovingInvestor wrote:
Wed Nov 13, 2019 10:56 pm
2) Is there any additional IRS paperwork required ? I am guessing I just add the catch up amount on the appropriate line on Form 8889 ?
Yes, on the separate 8889 you fill out. Your spouse fills out hers. The two of you get to decide how to split the $7000 between her HSA and yours.
by FiveK
Thu Nov 14, 2019 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Convert Trad to Roth or Not
Replies: 10
Views: 676

Re: Convert Trad to Roth or Not

Longdog; thank you very much. Stoic9; Based on Longdog"s response, I now understand why you asked the question about where the money to pay the taxes would come from. I can indeed cover the taxes via other means. In your opinions, does that dramatically change the perspective? Depends on the defini...
by FiveK
Thu Nov 14, 2019 5:06 pm
Forum: Personal Investments
Topic: HSA vs 401k Roth Conversions
Replies: 10
Views: 331

Re: HSA vs 401k Roth Conversions

I'm also hoping to retire or at most go part time in the next 7-8 years. ... Am I missing something here given my timeline? Thanks in advance. If you plan to retire at 40 - shouldn't you be able to max your 401k and your HSA, along with Roth? Had (I think) the same reaction as surfstar: if $57K or ...
by FiveK
Thu Nov 14, 2019 4:57 pm
Forum: Personal Investments
Topic: IRA rollover limit 1 per year
Replies: 5
Views: 352

Re: IRA rollover limit 1 per year

See Rollovers of Retirement Plan and IRA Distributions | Internal Revenue Service for details.

The indirect rollover does count, but "The one-per year limit does not apply to...plan-to-IRA rollovers [or] plan-to-plan rollovers" so it appears your May 2019 rollover does not count.
by FiveK
Thu Nov 14, 2019 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Paying estimated tax on 4th Q Roth conversion
Replies: 3
Views: 271

Re: Paying estimated tax on 4th Q Roth conversion

Can I just add the estimated tax amount of the Roth to the estimated amounts I've been paying for the last payment? Yes. If you had paid enough estimated tax in the first 3 quarters to match your tax liability in that time, and do the same for the 4th quarter, everything will be fine. You may need ...
by FiveK
Thu Nov 14, 2019 4:24 pm
Forum: Personal Investments
Topic: Retiring soon and need help
Replies: 19
Views: 2272

Re: Retiring soon and need help

Newlearner19 wrote:
Thu Nov 14, 2019 1:51 pm
Maybe someone can advise me how to quote part of a reply & add comments as I can’t find directions.
onthecusp already provided the specific answer.

In case you want to delve deeply, see phpBB • Documentation. Current software version is phpBB 3.2.8..
by FiveK
Thu Nov 14, 2019 2:50 am
Forum: Personal Finance (Not Investing)
Topic: HuffPo: IRS announces 2020 tax brackets
Replies: 1
Views: 679

Re: HuffPo: IRS announces 2020 tax brackets

See also https://www.irs.gov/pub/irs-drop/rp-19-44.pdf ("This revenue procedure sets forth inflation-adjusted items for 2020 for various provisions of the Internal Revenue Code") for others.
by FiveK
Thu Nov 14, 2019 12:20 am
Forum: Investing - Theory, News & General
Topic: Order or distributions on Roth IRA
Replies: 34
Views: 2205

Re: Order or distributions on Roth IRA

international001 wrote:
Wed Nov 13, 2019 11:47 pm
Is this tIRA a rollover IRA by any chance?
Does it matter?
by FiveK
Wed Nov 13, 2019 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA guidance
Replies: 9
Views: 778

Re: Roth IRA guidance

Count of Notre Dame wrote:
Wed Nov 13, 2019 6:38 pm
Why carry the student loans when you could sell off part of your taxable investments (hopefully not incurring a lot of taxes) to pay off that nuisance? I know the rate is low, but still!
Up to the OP, but if it is on auto-pay then the nuisance factor might be even lower than the interest rate.
by FiveK
Wed Nov 13, 2019 2:19 pm
Forum: Personal Investments
Topic: Retiring soon and need help
Replies: 19
Views: 2272

Re: Retiring soon and need help

It looks like Roth conversions make sense for spouse/I especially if one of us was to be a sole survivor. I plan to fine tune how much to convert as we get closer to retirement (and figure out ACA healthcare insurance) and to run my numbers through some tools (which I have not completely done yet) ...
by FiveK
Wed Nov 13, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Mysolo401k.com vs Vanguard solo 401k at higher income levels
Replies: 4
Views: 234

Re: Mysolo401k.com vs Vanguard solo 401k at higher income levels

Saver21 wrote:
Wed Nov 13, 2019 1:21 pm
Would also love to hear if there are other considerations that I am not thinking about in terms of benefits of one vs the other.
Solo 401(k) plan - Bogleheads might be worth a read.
by FiveK
Wed Nov 13, 2019 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA guidance
Replies: 9
Views: 778

Re: Roth IRA guidance

Gritty1109, welcome to the forum. 1. For years I have contributed to my 401k as a Roth contribution. Would I be better served to make these contributions pretax instead, given my tax bracket? 2. I have the opportunity to roll out my work 401k (Roth) to my personal Roth IRA due to a change in employm...
by FiveK
Wed Nov 13, 2019 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Health insurance - HDHP (with HSA) versus PPO
Replies: 5
Views: 475

Re: Health insurance - HDHP (with HSA) versus PPO

Might be worth putting your numbers into a couple of comparison tools, e.g., Health Savings Account (HSA) vs. Traditional Health Plan and the 'HDHP Analysis' tab of the personal finance toolbox spreadsheet. If they support your leaning, then your leaning is probably correct. :)
by FiveK
Wed Nov 13, 2019 12:37 pm
Forum: Personal Investments
Topic: Pending Retirement/Tax Deferred Funds/Conversion Strategies?
Replies: 4
Views: 476

Re: Pending Retirement/Tax Deferred Funds/Conversion Strategies?

Is it possible or would it be advisable to convert from a 401k to a Roth 401k (but I don't have a 5 year history there)? Converting directly to a Roth IRA (because there are no RMDs from a Roth IRA but there are RMDs from a Roth 401k) seems better. Some quick estimates put you in the 24% bracket (u...
by FiveK
Wed Nov 13, 2019 12:24 pm
Forum: Personal Investments
Topic: Taxes on Long Term Capital Gains
Replies: 12
Views: 1258

Re: Taxes on Long Term Capital Gains

RubyTuesday wrote:
Wed Nov 13, 2019 12:18 pm
Every dollar of additional ordinary income was taxed at 12% AND pushed another dollar of cap gain that had been taxed at 0% to 15%. So the effective marginal rate of the additional dollars of ordinary income was 27%.
+1

See Marginal tax rate - Bogleheads for that example in chart form.
by FiveK
Wed Nov 13, 2019 2:32 am
Forum: Personal Finance (Not Investing)
Topic: How to Calculate Qualified Expense (for 529 Plan) for College Student Living at Home
Replies: 19
Views: 1330

Re: How to Calculate Qualified Expense (for 529 Plan) for College Student Living at Home

Left unspecified by that document is how one determines "the fair rental value of the home”. I am going to use “allocated actual” housing expenses to determine qualified 529 expenses. Using “fair rental value” (which is probably higher) as the basis for qualified 529 expenses *might* require the pa...
by FiveK
Wed Nov 13, 2019 1:57 am
Forum: Personal Finance (Not Investing)
Topic: How to Calculate Qualified Expense (for 529 Plan) for College Student Living at Home
Replies: 19
Views: 1330

Re: How to Calculate Qualified Expense (for 529 Plan) for College Student Living at Home

One could follow the method outlined by the Worksheet for Determining Support, used when one is determining if another is a dependent.

Left unspecified by that document is how one determines "the fair rental value of the home." The One Percent Rule might be a defensible approach.
by FiveK
Wed Nov 13, 2019 1:46 am
Forum: Personal Investments
Topic: To Roth or not to Roth, that is the question
Replies: 8
Views: 1141

Re: To Roth or not to Roth, that is the question

I have “roughly “ calculated that I need to reduce my total RMD’s by approximately $100k before 70-1/2, to stay in the 22% bracket add avoid the IRMAA cliff. Do you mean reduce the RMDs by $100K (which would require reducing your traditional balance by $2 million or so), or do you want to reduce th...
by FiveK
Tue Nov 12, 2019 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: HSA catch-up contribution to 2 separate accounts
Replies: 7
Views: 374

Re: HSA catch-up contribution to 2 separate accounts

For the $7000 family maximum you can contribute in any ratio between two accounts. If you contribute more than $7000 but no more than $8000, you have to choose between the two accounts for the extra but you could put everything into one account. If you contribute more than $8000 then you have to put...
by FiveK
Tue Nov 12, 2019 1:43 pm
Forum: Investing - Theory, News & General
Topic: Order or distributions on Roth IRA
Replies: 34
Views: 2205

Re: Order or distributions on Roth IRA

With Vanguard, If I want to open, I just have to open it it as 'Traditional IRA', right? If you want a traditional IRA, yes. If you want a Roth IRA, you open it as a Roth IRA. For your situation, the word rollover is an irrelevant adjective. In other words, it has no effect on your finances and tax...
by FiveK
Tue Nov 12, 2019 12:51 pm
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 35
Views: 1566

Re: "Tax advantaged Annuity" advised for friend

Do folks agree with this? "Using its lower fees as rationale, convince your friend to 1035 transfer to Vanguard (if she still can as Vanguard is passing administration of investment annuities to Transamerica by December 2020). There she will get honest advice. Her current advisor's "advice" is not ...
by FiveK
Tue Nov 12, 2019 12:38 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion Calculation
Replies: 17
Views: 1379

Re: Roth Conversion Calculation

If that is not paying the Medicare surcharge, then your gross income can't be greater than $85,000 this year. Because the income brackets used to determine Medicare surcharges in 2020 will increase by 1.7%, rounded to the nearest $1,000 , you can go up to $87,000 for 2019. Perhaps even more, becaus...
by FiveK
Tue Nov 12, 2019 1:06 am
Forum: Investing - Theory, News & General
Topic: Order or distributions on Roth IRA
Replies: 34
Views: 2205

Re: Order or distributions on Roth IRA

Fidelity (401k) sent me some forms to do the tIRA->401k rollover It tells me that it will accept money from conduit (rollover) IRAs and non-conduit IRAS Is there a difference between a rollover IRA and a traditional IRA? Not in terms of taxation. See Rollover, Traditional, And Roth IRAs . But some ...
by FiveK
Tue Nov 12, 2019 1:00 am
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 35
Views: 1566

Re: "Tax advantaged Annuity" advised for friend

Just got some more information: From her: "It is in an annuity. I am considering converting it to a tax advantaged annuity. All annuities are "tax advantaged" in that gains are not taxed until withdrawn - as opposed to a taxable account in which interest and dividends are taxed annually. All annuit...
by FiveK
Tue Nov 12, 2019 12:50 am
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 35
Views: 1566

Re: "Tax advantaged Annuity" advised for friend

Wenonah wrote:
Tue Nov 12, 2019 12:23 am
billfromct:
"Short term money (1-5 years) to build a house/pay for college should be put in a short term fixed income investment never into an annuity. Annuities should only be used for long term (40-50 year) retirement savings."

Basically just a money market or short term CDs??
Pretty much.
by FiveK
Tue Nov 12, 2019 12:08 am
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 35
Views: 1566

Re: "Tax advantaged Annuity" advised for friend

I need some savvy people to ask me questions for her, so she does the right thing with this money! Thanks! What does "locked in" mean? Re: "...taken 50,000 out of the taxable interest. It is non taxable...." What is taxable to her and what isn't? Has she annuitized this policy or is it still in the...
by FiveK
Mon Nov 11, 2019 10:38 pm
Forum: Personal Investments
Topic: "Tax advantaged Annuity" advised for friend
Replies: 35
Views: 1566

Re: "Tax advantaged Annuity" advised for friend

Wenonah wrote:
Mon Nov 11, 2019 10:28 pm
...currently in an annuity that is locked in, earning 2.8% a year and she can take out 10,000.00 a year.
What does "locked in" mean?

Usually the best reaction to annuities suggested by a "financial advisor" is to run far, far away. Don't know enough about this one to suggest otherwise.
by FiveK
Mon Nov 11, 2019 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: savings/retirement/benefits options for a small nonprofit
Replies: 1
Views: 164

Re: savings/retirement/benefits options for a small nonprofit

Don't know what the best provider would be for you, but Employee Fiduciary is often mentioned as one that might make your short list. E.g., see "employee fiduciary" site:bogleheads.org - Google Search for several threads that mention that and other "usual suspects." Might give you a start....
by FiveK
Mon Nov 11, 2019 8:50 pm
Forum: Investing - Theory, News & General
Topic: Roth Conversion Calculation
Replies: 17
Views: 1379

Re: Roth Conversion Calculation

In short, TaxCaster has too many shortcomings. It might be accurate for you, but there are much better tools that are just as easy to use.

See US and state income tax calculator - Bogleheads.org for a good overview of the better web-based and spreadsheet options.
by FiveK
Mon Nov 11, 2019 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement and Tax savings question
Replies: 7
Views: 557

Re: Retirement and Tax savings question

Morgan84 wrote:
Mon Nov 11, 2019 4:16 pm
Can we have 401K and IRA account at same time and max both of them.
Yes.

See IRA Deduction Limits | Internal Revenue Service for AGI limits on deducting a tIRA contribution, and follow the link in that article to the AGI limits on direct Roth contributions.
by FiveK
Mon Nov 11, 2019 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement and Tax savings question
Replies: 7
Views: 557

Re: Retirement and Tax savings question

This year our combined income would be close to 205K and I plan to contribute 15K till end of year to 401K. Is there anything we can do other than Backdoor Roth for my spouse. Is that $205K gross (before any deduction), or is that your expected Adjusted Gross Income (AGI) which is your gross income...
by FiveK
Mon Nov 11, 2019 4:04 pm
Forum: Personal Consumer Issues
Topic: Water hammer
Replies: 27
Views: 2107

Re: Water hammer

About every 5 or 6 hours, I hear the sound of water being pumped, usually 3 bursts, then followed by water hammer in the pipes. This occurs during periods where I have not used water for a number of hours. I suspect maybe a slow leak, as no real change has happened in my water bill. Does the water ...
by FiveK
Mon Nov 11, 2019 2:01 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 290
Views: 19334

Re: Will we be OK at 3% WR?

It took a while but it finally dawned on us our real risks to a long happy and successful retirement was premature death or lifestyle degrading disability/illness. And for a couple, it only takes a misfortune to one or the other to really mess up long-held hopes and plans for both. And even absent ...
by FiveK
Mon Nov 11, 2019 3:03 am
Forum: Personal Investments
Topic: mega backdoor roth gone wrong
Replies: 16
Views: 1732

Re: mega backdoor roth gone wrong

My Roth 401K bucket is 0 right now and I will be under 50K total for the year. The amount you can move from the after-tax non-Roth to the Roth 401k is unaffected by how much is already in the Roth 401k. E.g., you could have $1 million in your Roth 401k and still be able to move your entire after-ta...
by FiveK
Mon Nov 11, 2019 2:00 am
Forum: Personal Investments
Topic: Backdoor Roth Gone Wrong
Replies: 12
Views: 1237

Re: Backdoor Roth Gone Wrong

I have been doing my taxes (via TurboTax), which I'm realizing is probably not the smartest idea. I'm probably going to enlist an accountant's help in the future... Although, now you know how form 8606 should look, so you may know more than an accountant who is unfamiliar with the backdoor Roth pro...